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Title: Strategic Interactions between Parents and Daughters: Co-residence, Marriage, and Intergenerational Transfers in Japan

Citation Type: Miscellaneous

Publication Year: 2007

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Abstract: Over the last few decades, the fraction of young adults residing with their parents has risen in many countries. In this paper, to understand the extent of the determinants of intergenerational co-residence, we develop and estimate amodel of decision-making about family co-residence, intergenerational monetary transfers, and marriage. The model incorporates differences in parents' tastes about marriage and co-residence of their child, cultural heterogeneity, and altruism within the family. As environmental factors that influence the co-residenceand marriage decisions, we consider housing market conditions (housing rent) and marriage market conditions (matching probability). The model is estimated using a unique panel dataset on young women in Japan, which contains unusually rich information on monetary transfers between parents and children, regardless of whether the child resides with the parent. The estimated model is used to study the effects of strategic parental transfers and to perform a variety of counter-factual policy experiments of the kind recently introduced or being considered in Japan. For example, we assess how the strategic transfers affect the choices and the welfare of the parents and the children. We also evaluate the quantitative impact of housing policies, such as rent subsidy programs aimed at young people. In addition, we analyze the effect of government intervention in the marriage market in the form of the newly instituted and government-supported matching services.

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Authors: Sakudo, Mari

Publisher: Department of Economics, University of Chicago

Data Collections: IPUMS USA

Topics: Family and Marriage, Housing and Segregation, Other

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